Arkema SA

Latest Results (19.11.2025):

Arkema SA’s Third Quarter 2025 results show a challenging yet resilient performance with sales of €2.2 billion, down 4.7% year‐on‐year at constant exchange rates, and an EBITDA decline to €310 million (14.2% margin). Despite weaker demand in parts of Europe and the United States and pressure from negative price and currency effects, the Group delivered robust cash flow of €207 million, reduced net debt, and advanced its cost‐cutting initiatives while reinforcing its strategy in high-growth markets.

Sales & Market Demand

For Q3 2025, Arkema SA reported total sales of €2.2 billion, reflecting a 4.7% decline compared to the previous year. The decrease was driven primarily by lower volumes (down 2.5%), especially in North American and European markets, although Asian markets, notably China, maintained resilience. Meanwhile, key innovation-driven segments such as batteries, sports, 3D printing, healthcare and new-generation fluorospecialties enjoyed roughly 20% year-on-year sales growth.

EBITDA & Profitability

Arkema SA’s EBITDA fell to €310 million from €407 million in Q3 2024, yielding a reduced margin of 14.2% compared to 17.0% in the prior year. Negative impacts arose from factors such as the acrylic cycle, lower sales in Coating Solutions, unfavorable currency effects (around €15 million), and seasonal variations. Adjusted net income dropped to €78 million (€1.04 per share), signaling challenges in maintaining profitability amidst market headwinds.

Cash Flow & Debt Management

The Group demonstrated strong operational discipline with a recurring cash flow increase to €207 million and free cash flow of €185 million. Effective management of working capital and lower capital expenditure (with a planned reduction to around €600 million in 2026) contributed to these results, while net debt (including hybrid bonds) decreased by nearly €200 million to €3.4 billion. Additionally, a €500 million green bond issuance underlines Arkema SA’s commitment to sustainable financing.

Cost-Cutting & Strategic Outlook

Cost-containment measures played a significant role during Q3 2025, with initiatives targeting the offset of fixed cost inflation over 2025 and 2026. The company continues to refine its strategic focus by investing in high-growth sectors and launching new platforms, such as the One Arkema platform for data centers, to capitalize on emerging market opportunities. Guidance for 2025 anticipates an EBITDA between €1.25 billion and €1.3 billion and a recurring cash flow of approximately €300 million, reflecting cautious expectations in a challenging macro environment.